Consumer electronic sales rises by 9% : Digital cameras, flat panels, communications devices and MP3 players continue to drive consumer electronics (CE) industry sales growth as evidenced in figures released today by the Consumer Electronics Association (CEA) in its revised U.S. Consumer Electronics Sales and Forecast Report. According to Market Research, total CE factory-to-dealer sales in 2005 are projected to increase 9% on revenues of $123 billion. CEA reported that final year-end figures indicate total industry sales grew 10% in 2004, totaling $113 billion in revenues. CEA reported that some sales increases are coming as consumers make replacement or upgrade purchases, specifically pointing to the digital camera and wirele

Wargo - Top sales
Wargo also noted that CEA upwardly revised MP3 projections based on continued consumer interest in portable audio products. Total MP3 sales are projected to reach 15.9 million units in 2005, compared to 7.1 in 2004. Satellite radio sales also are expected to do well in 2005, contributing to the audio and after-market categories. “The CE industry certainly is delivering on the digital promise for consumers." "Prices are low. It's a great time to be shopping for consumer electronics."

CEA President - Healthy growth
"The consumer electronics industry continues to enjoy healthy growth and consumers are faring even better thanks to competitive pricing and overall price deflation," said CEA President and CEO Gary Shapiro. "While price declines and competition place pressure on profit margins, these factors also help drive total unit sales as consumers flock to join the digital era. With this in mind, we have upwardly revised sales projections for several product categories in our updated 2005 forecast report."

Digital cameras - Consumers keep buying
"Even with digital cameras now in 49 percent of U.S. homes, consumers are purchasing higher mega-pixel digital cameras as upgrades to their original digital cameras," said CEA Director of Industry Analysis Sean Wargo. "We're seeing a similar upgrade mentality with wireless communications handsets. Many consumers are opting for digital camera phones and smart phone devices as opposed to direct model replacement purchases. This demonstrates how established these products are in the lives of consumers."

CEA - Forecast
CEA reported in the Forecast Report that digital camera sales totaled 18.9 million units in 2004, representing $4.7 billion in industry sales. The revised forecast report shows an updated 2005 sales projection of 23.1 million units on an estimated $6.1 billion. The average digital camera unit price also is expected to increase from $251 to $265, whereas the flash media category is expected to experience a unit price decline. Despite the price decline, flash media is projected to produce $3.5 billion in sales in 2005 compared to $3.1 billion in 2004.

Electronica - Consumers benefit
Consumers also will benefit from flat panel wholesale price declines, which Wargo attributes to manufacturing cost efficiencies and robust competition. The average LCD unit price will decrease from $857 in 2004 to $754 this year; the average plasma unit price is projected to decrease from $2,698 to $1,953. CEA expects plasma and LCD unit shipments to nearly double compared to last year as consumers enjoy the lower prices. LCD unit sales are projected to reach 3.9 million units on $3 billion compared to 1.8 million units and $1.6 billion in 2004. Plasma unit shipments are projected to reach 2 million and $3.9 billion, increasing dramatically over the 2004 volumes of 870,000 units and $2.3 billion.